What I Learnt Today #112 I Startup Monday’s How green is my valley? If you are planning to raise money from Angles of VC’s you need to understand how your venture is likely to be valued. Basically it is a black box with broad strokes. How each parameter corresponds to value is still unknown as it varies widely form one investor to the other. Specially if you have generated interest from multiple VC’s. Jason Calacanis in his recent post The Valuation Vs Traction Matrix (he says it is work in progress) has some very pertinent points that founders need to pay attention to. “Startup valuations are not science, but they’re not magic either. It’s a bit of alchemy, combined with bizarre marketplace dynamics like famous founders getting 3x the price for half the traction,…” writes Jason. #alwayslearning #startup #funding
